Nov. 28 (Bloomberg) -- The cost of insuring against default
on European sovereign debt fell from a record closing price,
according to traders of credit-default swaps.

The Markit iTraxx SovX Western Europe Index of swaps on 15
governments dropped 12 basis points to 373 at 3 p.m. in London.
Contracts on Belgium and France fell from record closing prices,
while Spain and Germany also decreased. A decline signals
improved perceptions of credit quality.

The Markit iTraxx Financial Index linked to senior debt of
25 banks and insurers dropped 28 basis points to 330 and the
subordinated gauge tumbled 42 to 573, both down from all-time
highs, according to JPMorgan Chase & Co.

A basis point on a credit-default swap protecting 10
million euros ($13.4 million) of debt from default for five
years is equivalent to 1,000 euros a year. Swaps pay the buyer
face value in exchange for the underlying securities or the cash
equivalent should a borrower fail to adhere to its debt
agreements.